Why Is Jet.AI Stock Skyrocketing Today?

Software and aviation company Jet.AI Inc JTAI is trading higher on Wednesday.

The company is focusing on the rising need for AI infrastructure with a strategic initiative in Nevada.

Headquartered in Las Vegas, it has locked in a 50-megawatt project on a 120-acre site, with plans to increase its capacity to a full gigawatt in the future.

In addition, for the first project, the company has retained a company founded by professional data center builders to assist with planning and execution.

This move follows the expansion of traditional data centers in the area, which are investing in solar and nuclear power to support AI growth.

With a focus on providing secure, proprietary AI computing environments, Jet.AI is positioned to cater to hyperscalers and specialized clients requiring dedicated facilities.

Also Read: E-Commerce Company Etsy Q4 Earnings: Sales Miss, Pressured Consumer Spending, Active Buyers Dip And More

As companies like Amazon.com Inc’s AWS, Microsoft Corp’s Azure, and Alphabet Inc’s Google Cloud dominate cloud-based AI services, this project intends to fill an essential niche that supports the AI industry’s growth.

“Most older data centers weren’t built with AI in mind – their lower-wattage server racks simply can’t handle the hefty power needs of today’s AI systems. That means new construction is the name of the game, which brings me to where we’re headed next,” said Founder and Chairman Michael Winston.

The expense of developing one megawatt of data center capacity is around $10 million. Each megawatt typically produces about $1 million in Net Operating Income (NOI), resulting in a 10% return on the initial construction cost, emphasized Winston.

Last week, flyExclusive, a provider of private jet charter services, signed a definitive agreement to acquire Jet.AI’s aviation business.

Price Action: JTAI shares are trading higher by 69% at $6.86 at the last check Wednesday.

Read Next:

• Uber’s Ski Service Launches Across Europe: Details

Photo via Shutterstock.